Re-engineering the tax code
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Broken 2012 Income Tax Brackets
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Income RangeMultiplierRangeTax in RangeMax TaxTax
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10% Bracket $0 – $8,7000.18,700870870
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15% Bracket $8,700 – $35,3500.1526,6503,9984,8684815Ms. Simon earns $35K and pays 4815 under this system
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25% Bracket $35,350 – $85,6500.2550,30012,57517,443
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28% Bracket $85,650 – $178,6500.2893,00026,04043,48334197.72Family Biz owner earns $125K and pays 34K under this system
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33% Bracket $178,650 – $388,3500.33209,70069,201112,684
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35% Bracket $388,350 - 2,070.3130.351,681,963588,687701,371
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Re-Engineering the Tax Brackets
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Income RangeMultiplierRangeTax in RangeTotal Tax
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3% Bracket$0 - $21,2000.0321,200636636
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7% Bracket$21,201 - $53,0000.0731,8002,2262,8621602Ms. Simon earns $35K and pays 1602 under this system
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11% Bracket$53,000 - $132,5000.1179,5008,74511,60711418Family Biz owner earns $125K and pays 11K under this system
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23.3% Bracket $132,501 - $331,2500.233198,74946,30957,916
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29.7% Bracket $331,251 - $828,1250.297496,874147,572205,487
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31.9% Bracket $828,126 - $2,070,3120.3191,242,186396,257601,744
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Special rates for millionaires
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41% Bracket$2,070,313 - $5,175,7810.413,105,4681,273,242
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43% Bracket$5,175,781 + 0.435,175,7812,225,586
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